In a recent announcement, the Reserve Bank of India (RBI) revealed that 50% of the ₹2,000 notes in circulation have been returned, marking approximately 20 days since their withdrawal was initiated. The total value of the returned notes sums up to ₹1.8 lakh crore.
RBI Governor Shaktikanta Das shared that 85% of the notes have been returned in the form of bank deposits. He stated, “We are currently reconciling the figures, but on a provisional basis, I can say that about 85% of the 2,000-rupee notes are being deposited into bank accounts.”
As of March 31, there were ₹3.62 lakh crore worth of 2,000-rupee notes in circulation.
Governor Das also urged the public to avoid a last-minute rush in the last 10-15 days of September. The notes can be deposited or exchanged at banks until September 30, and the central bank assures that there is an adequate supply of currency available for exchange.
Even before the withdrawal, the value of notes in circulation had significantly declined by 46% between 2018 and 2023. The RBI previously stated, “The total value of these banknotes in circulation declined from ₹6.73 lakh crore at its peak on March 31, 2018 (37.3% of total notes in circulation) to ₹3.62 lakh crore, constituting only 10.8% of total notes in circulation on March 31, 2023.”
The withdrawal of the ₹2,000 notes was announced on May 19, with a limit set at ₹20,000 for exchange or deposit at a time.
The ₹2,000 note was introduced in November 2016 under Section 24(1) of the RBI Act, 1934, which grants the central bank the authority to issue notes of any denomination not exceeding ₹10,000. The primary objective was to address the immediate currency requirements of the economy after the demonetization exercise.
The RBI governor had previously stated that the bank anticipated a majority of the notes to be returned, and the recent figures seem to align with this expectation.
